India Market Overview2020

5/4/2020

Sara Sodhi

Visit Finland :India

5/4/2020 SARA SODHI

Facts & statistics

It is the 7th largest country in the world by land

area, and the second most populous, with a

population of 1.3 billion people.

Capital: New Delhi

Main Cities: Mumbai, Bangalore, Kolkata, Chennai

Major Religion: Hinduism is by far the most

prevalent, with almost 80% of the population

describing themselves as Hindu

Main Languages: Hindi, English

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• “Namaste” is one of the most popular

Indian customs .

• It literally translates to I bow to you

indicated by the folded palms placed

before the chest.

• It also signifies the reductions of ones

ego in the presence of the other.

Indian Culture - Unique Customs and Traditions

The “Namaste” Atithi Devo Bhavah

• In India, the saying Atithi Devo Bhavah is also

integral.

• It means the guest is equivalent to god.

• It is a Sanskrit verse taken from the Hindu

scriptures which later became a part of the Code

of conduct for Hindu society, since the guest has

always been of supreme importance in the

culture.

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• India sees a large number of festivals,

mainly because of the prevalence of diverse

religions and groups.

Always a Festive Season Joint Families

• In India, there exists the concept of a joint

family, wherein the entire family (parents,

wife, children and in some cases relatives)

all live together. This is mostly because of

the cohesive nature of the Indian society,

and also reportedly helps in handling

pressure and stress.

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Religions Bollywood

• One of the most famous and popular aspects of

Indian culture, the thriving Bollywood film industry

is based in Mumbai (formerly known as Bombay).

• Though similar in some ways to classic Broadway

musicals, the colorful films from this area have a

unique flavor that’s all their own.

• With the name “Bollywood” originally achieving

notoriety in the 1970s, this industry has grossed

billions of dollars over the years.

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• Tea is India's most popular drink - the

country consumes 837,000 tonnes of it

every year.

• The ritual of drinking chai transcends all

boundaries

• A popular ingredient in north Indian chai,

ginger is believed to have numerous health

benefits and is thought to keep your body

warm in winter.

Chai - the drink India can't live without

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• Cow, in the Indian culture,

is considered to be a Holy

animal.

• She is worshipped as a

maternal figure and is a

depiction of the bounty of

Mother Earth.

• Cows have an auspicious

significance in Indian

culture and religion.

Holy Cow Tandoori Chicken Food Insights

• Chicken is among the

most popular meats

eaten by many non-

vegetarians in India.

• Tandoori chicken is a

famous dish known for

its fiery red color.

• Vegetarians

• Vegan don’t eat egg (breads, cake and icecream)

• Jains don’t eat root vegetables (no onion and garlic)

• Non Vegetarians Indians

don’t eat beef

very few eat pork

With regards to fish & sea food it is always recommended to check with the client

• Always check if they have any dietary

preference

• Indians will be happy to eat local food ;

Finnish Breads, soups, pastas, burgers, fish,

chicken & reindeer preparations

• Indians have sweet tooth & will love Finnish

Desserts (especially Berries)

• Try to place Salt, Pepper, Olive Oil/ Balsamic

Vinegar, Chilli Oil /Chilli Flakes & Oregano as

accompaniments on the table

• They are happy to eat with knife & forks

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How to Cater to Indian Food Requirements

• A healthy breakfast is regarded as a very

important meal in the Indian diet.

• Happy to eat cereal, nuts, fresh fruits, cold

cuts for breakfast

• Value Add: Offer freshly made eggs to order

(omelette, scrambled eggs, boiled eggs etc.)

• Families often come together in the evening to

drink tea, eat snacks and have family

conversations. (Offer Cookies, Muffins &

Cakes)

• Dinner is deemed as the main meal.

• Mostly Indians prefer drinking still Water

• Men prefer Whisky with water/ Ice/ Soda

• Women prefer Wine & Champagne

• Beer is loved by everyone

• Vodka, Gin, Tequila are also very popular

with Indians

• Will be happy to try local Gin (Napue)&

local cocktails

• Urban Indians are experimental with

Drinking and also quite heavy on drinking

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Beverage Requirements

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Recommended Value Ads :

• Offer Luggage / Porter Service (Chargeable basis)

• Provide Tea/ Coffee maker in the room ( Darjeeling Tea Bags

if possible)

• Provide Iron & Iron Board in the room

• Offer Late Check Out (as and when possible as a gesture)

• Indians like to be extremely active hence it is recommended to give them

busy schedule during the day & free evenings

• Snowmobiling

• Northern Lights Chase

• Husky Safari / Husky Farm Experience

• Reindeer Safari / Reindeer Farm Experience

• Traditional Sauna Evening

• Lunch / Dinner in Lappish Hut (engage them in cooking if possible)

• Night Life – Recommend Pubs/ Bars in the evenings

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Preference of Activities

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India Economic Outlook

• India is now the world’s 5th largest

economy

• India, in this ranking, has leapfrogged France

and the UK.

• The country's GDP growth has been

among the highest in the world in the past

decade – regularly achieving annual growth

of between 6-7%.

• This rapid rise has been fueled by a

number of factors, according to a 2016

McKinsey Global Institute report, including

urbanization and technologies that have

improved efficiency and productivity.

5/4/2020

Source:

https://www.weforum.org/agenda/2020/02/india-gdp-economy-growth-uk-france/

SARA SODHI

India Economic Outlook – Tourism

• Encouraged by its pace-setting GDP, rising personal income levels and changing lifestyles,

huge middle class as well as the availability of low-cost air fares and diverse travel packages,

India is rapidly becoming one of the fastest growing outbound travel markets in the

world.

• In just the last 20 years, the number of outbound tourists from India has grown from

3.5 million to 21.9 million, making it the fastest-growing outbound market behind

China.

• In year 2000, less than 5 million Indians were heading out of the country.

• Today, around 20 million+ Indians are setting off to foreign lands seeking new

experiences.

• The UNWTO predicted that India will account for 50 million outbound tourists by 2020

becoming World’s Number 1 Outbound market.

• With more than 20 million Indian nationals now living throughout the world (3.4 million

in the US), the volume of outbound travel is increasing about 25% a year.

5/4/2020

Source:

https://www.forbes.com/sites/edfuller/2017/03/14/ignore-india-at-your-peril/#4b02d0074225

https://www.business-standard.com/article/economy-policy/number-of-indians-travelling-

abroad-to-double-by-2020-118010700295_1.html

SARA SODHI

India Economic Situation

• In 2013, Indians took the international trip once in 21 months. Now Indians holiday/vacation once

in a year!

• India’s population (currently 1.3 billion) is expected to overtake China’s as the world’s largest in the next

five years, and its young, tech-savvy, educated middle class will double in size to 547 million shortly

thereafter. Within five years, India will also rank as the world’s youngest country demographically.

• India is counted as the 'youngest' among all countries in the Asia Pacific region, considering the

number of its citizens below 30. According to a study by Amadeus, 23% of Indian leisure travellers

are under the 30 age group.

• The sheer size of its rapidly expanding middle class practically guarantees success for India’s travel

consumer story for the next 20 years. Bigger than the entire US population, India’s middle-class

today numbers 350 million people.

• A sizable number of Indians have a net worth of more than $1 million and 180 million Indians -

three times the population of the UK - speaks English, and many of these folks own cars, cell

phones and carry credit cards.

5/4/2020

Source: https://www.business-standard.com/article/economy-policy/number-of-indians-

travelling-abroad-to-double-by-2020-118010700295_1.html

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• When traveling abroad, Indian tourists are among the world’s highest-spending

globetrotters.

• Their spending power has been estimated to be four times that of the Chinese and

Japanese.

• In fact, most Indian business and VFR trips include leisure and shopping components, and

nearly half of all Indians who venture abroad do so to shop with almost 75% buying

branded duty-free goods.

• The average Indian traveler spends $1,200 per visit as compared with Americans

who spend about $700, and Brits who spend $500.

• Traditionally, globetrotting Indians tended to come from Tier 1 cities such as New Delhi,

Mumbai, Chennai and Bangalore, but lately smaller cities like Jaipur, Ahmedabad, Pune

and Amritsar are emerging as important source markets for outbound travel as well.

Economic Influence On Indian Travel Trends

5/4/2020

Source:

https://www.forbes.com/sites/edfuller/2017/03/14/ignore-india-at-your-peril/#4b02d0074225

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Some Travel Highlights & Trends

5/4/2020

Source: https://pickyourtrail.com/2018-travel-

trends-international-vacations-ideas

SARA SODHI 5/4/2020

Source: https://pickyourtrail.com/2018-travel-

trends-international-vacations-ideas

SARA SODHI 5/4/2020

Source: https://pickyourtrail.com/2018-travel-

trends-international-vacations-ideas

SARA SODHI 5/4/2020

Source: https://pickyourtrail.com/2018-travel-

trends-international-vacations-ideas

SARA SODHI 5/4/2020

Source: https://pickyourtrail.com/2018-travel-

trends-international-vacations-ideas

• Historically focused on working, saving and acquiring material possession over ‘spending on leisure’

• Today sentiment is changing, new generation postponing owning and acquiring expensive items, for the sake of

‘living a good life’ instead

• Travel has become the new code of modernity and a mark of being successful

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Emerging Segments of Indian Travelers

• There is a new brand of travellers

emerging in India – FIT

• We are becoming more capable and

savvy, we pack lighter and compare

options online - FIT

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• We are changing … We used to be afraid-

now we are getting more daring

(GIT/Package Tours )

• Everyone wants to travel today- its not

anymore about buying a house (Gen Z)

• Traveling is the new badge of being

successful (Gen Z)

Changing Attitudes

A Convergence of triggers has facilitated

change in the past 5 years

• Everything opened up

• 4G Network & more affordable data packs

• Access to information – new apps

• Comfort with credit cards and online

payment

• Ease of obtaining passport and visas

• Rising income & increased exposure

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The biggest game changers –Gen Z’s are just

entering the market

• First gen grown up with international travel

• Digitally enabled

• Comfort with GPS, Google translate, DIY

• Travel is the new cool and sign of living life

• An inspirational force for millennials and Xers

Functional Triggers of Change

• Individuals with wealth of over USD 1 million and up to USD 30 million as high net-worth

individuals

• Individuals with wealth of above USD 30 million as ultra high net-worth individuals.

• India has the 11th position in the list of countries with HNI population.

• India has surpassed the 150,000 mark for millionaires, 70% are below 35 years of age and have

almost $241 billion in assets.

✓Urban population larger than many countries

✓Middle class will continue to grow

✓ 1.5 million Graduates per year

✓One of the World’s most optimistic countries

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India - globally the fastest-growing market in

terms of high net-worth individual (HNI) population

and wealth

Source: https://www.deccanchronicle.com/business/in-other-news/200618/india-shows-

fastest-growth-in-wealth-and-hni-population.html

https://timesofindia.indiatimes.com/business/india-business/indias-richest-1-corner-73-of-

wealth-generation-survey/articleshow/62598222.cms

Traditional Indian Traveller (Dominant)

• All Inclusive Packaged Tours

• Rely on the Agents advise

• Large groups (30-40 Pax)

• Fear driven – find safety in groups

• Multigenerational

• Less tech savvy

• Often Veg/ Jain

• Carry packed food from India

• Prefer Indian , fear local food

• Value = Number of countries visited

• Stay 1-2 Nights per location

• Hop On Hop Off Tours

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Urban Indian Global Explorers (Emerging)

• DIY, Researched, self assembled tours, researched

• Tell the agent what they want

• Small groups (6-10 pax)

• Confident and fearless

• Same age group

• Very Tech Savvy

• Non-Veg or Experimental Vegetarian

• Don’t carry food with them

• Curious about local food

• Value = Quality of Experiences

• Stay 3-4 nights or longer

• Seek authentic, local experiences

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India - New Emerging Travel Markets

• Families with children are big travellers in

the leisure segment in India

• The big annual holiday that most families

plan is now an international one

• Less multigenerational travel

• Exploring a place together, kid friendly

activities

• Emphasis on comfort and service

• Willing to spend on high-end hotels (No

AirBnB)

• Many still use agents, but are more DIY

than previous generation

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Urban Wealthly FIT Families

Centre their plans around kid-friendly activities

• Smaller groups of known individuals in

similar life stage

• Single friends / cousins / colleagues /

batchmates / newly wed couples / young

families with kids

• All about group activities and bonding

through partying, shopping and hanging

out together

• Do what family wouldn’t approve of ;

skimpy clothes, alcohol, party all night

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Millenials, Small Groups (6-10 Pax)

The urban group travellers of India

• Honeymoon, Babymoon, Birthdays and

anniversaries

• Chose to travel instead of buying jewellery

or assets

• Romance, spa treatments, bubblies and hearts

• Comfortable and luxurious experiences;

expense is not a key factor .. experience is

• Travel agents are now catering to this segment

with VIP Services and tailor made

experiences

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Celebratory Travelers (esp Millenials)

Celebration of life occasions

• Varied in age and background – bond

through shared experience of traveling

together

• Mood is of empowerment and freedom

• Finland and Scandinavia– being safe

countries have very high potential

• Tour Operators catering to this growing

segment

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Women Only Groups (10-15 Pax)

Big emerging trend highlighting the women empowerment

• The first generation to have travelled Internationally

as kids, with their parents

• Increasingly choosing destinations like Eastern Europe or

Scandinavia on their own

• Travel is new success – spend 20% of their income on

travel

• Plan their own itineraries

• Crave Instagramable local-hood experience

• Happy to stay in Hostels and AirBnB

• Not too much into basic sightseeing

• At ease with DIY

• Social media ambassadors ( Always use the right hash

tags, display the destination at its best )

• Don’t do single destinations , will club a few destinations

together- but spend longer time per destination

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Gen Z Travelers

The Game Changers

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Source Market & Travel Period

Main Source Markets :

• Main source regions are west and north (including central India) together accounting for about 65 per cent

of all outbound travel, followed by south (25 per cent) and east (10 per cent)

• Europe commands an estimated market share of about 20 per cent of all Indian outbound departures

• Dubai, Thailand, France, Singapore and Malaysia alone account for just over 50% of Indian leisure arrivals

overseas. Sri Lanka, Hong Kong, Indonesia (primarily Bali), the US and Switzerland are in the top 10 destination.

Travel Period:

• Peak Periods – April – June (Indian summer holidays)

• High season – Jan- Feb and October – December (Indian wedding season – honeymooners market & festive

holidays in schools)

• Shoulder Season – August and September

• Low Season – March and July

Source : https://www.business-standard.com/article/economy-policy/number-of-indians-travelling-abroad-to-double-

by-2020-118010700295_1.html

5/4/2020

• Long weekends of 2-3 nights , domestic

trips or short haul destinations

• Shorter trips of around 4-7 around Diwali &

Christmas breaks

• Europe is considered a multi country

destination, only a few nights at the same

location

• Finland is not a destination- Scandinavia or

Baltic is

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1st Domestic Travel expands to nearby

destinations

2nd Mainstream EU : London, Paris, Switzerland

3rd – US/ Canada or Australia/ New Zealand

4th – Eastern Europe :Prague, Budapest,

Croatia

5th – Alternate US/ Canada or Australia/ New

Zealand

6th -Northern Europe : Finland & Scandinavia

Travel Patterns, Duration & Travel Progression

5/4/2020 SARA SODHI

• MICE which includes business meetings, travel incentives for employees, conferences, large exhibitions

and events; is one of the fastest growing segments of the Indian outbound travel market.

• India is estimated to generate 6.5 million outbound luxury and MICE tourists annually by 2020,

reinforcing the country’s influence as a key source market for MICE and luxury travel.

• The business and meetings industry is the largest sector in the India outbound travel market

constituting 40-50% of total outbound travel volume.

• Travel industry sources estimate that the business travel segment as a whole is on a growth path due to

India’s growing trade and investment relations in the world.

• Significantly, the continued globalization of India is fuelling attendances in meetings, conventions and

exhibitions abroad, by business travellers from the flourishing Indian Information Technology (IT) sector,

pharmaceuticals, insurance, telecommunications and financial industry sectors.

• A lot of MICE has already started to Finland in last 2 years (Mahindra, Ultratech, ICICI, Appolo Tyres etc ;

Helsinki, Lakeland ( Saimaa) & Lapland Rovaniemi , Kemi, Saariselka)

Source :http://www.traveltradejournal.com/india-becoming-a-strong-source-market-for-outbound-mice/

2. FACTS AND FIGURES

57 %2 %-27 %-1 %

35 %43 %

45 %

26 %

29 %

-19 %13 %

-9 %

-20 %4 %18 %4 % 0 %

44 %3 %

27 %

0

20,000

40,000

60,000

80,000

1,00,000

1,20,000

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19

*

Sources: Visit Finland Statistics Service Rudolf, Statistics Finland

Indian overnights in Finland

Share of overnights by regions 2019*

65% 14% 8%

13%

Year 2019* (preliminary)

17th in country rankings (19th in 2018)with a 1% share of foreign overnights

Average change 2000-2019*: +14%

Change 2019* compared to 2000: +434%

*) year 2019 preliminary statistics

5/4/2020 SARA SODHI

Source: Visit Finland Statistics Service Rudolf, Statistics Finland

Trends for seasonal overnights in Finland – Indian visitors

0

5,000

10,000

15,000

20,000

25,000

30,000

Winter (Dec-Feb) Spring (Mar-May)

Summer (Jun-Aug)

Autumn (Sep-Nov)

2010 2011 2012 2013 2014

*) year 2019 preliminary statistics

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Whole Finland No. of Indian overnights Actual seasonal changeReasons behind the actual / expected change

2017 2018 2019* 2018 vs. 2017

2019 vs. 2018

Winter (Dec-Feb) 15 600 18 000 19 000 +15% +6%

Spring (Mar-May) 19 400 21 500 24 000 +11% +12%

Summer (Jun-Aug) 22 600 23 000 27 200 +2% +18%

Autumn (Sep-Nov) 19 700 17 700 29 300 -10% +66%

Indian overnights in Finland

Seasonal overnights in 2019*

Source: Rudolf data base, Statistics Finland

Coast & Archipelago 2019*

Winter 1 400 -2%

Spring 2 100 -10%

Summer 2 100 +18%

Autumn 8 300 +346%

Lapland 2019*

Winter 6 100 +49%

Spring 2 700 +15%

Summer 1 900 +17%

Autumn 2 200 +43%

Lakeland 2019*

Winter 1 100 -16%

Spring 2 300 +3%

Summer 2 600 -7%

Autumn 2 600 +75%

Helsinki area 2019*

Winter 10 500 -6%

Spring 16 900 +16%

Summer 20 600 +22%

Autumn 16 100 +26%Growing areas:HelsinkiVantaa

Growing areas:TurkuRauma

Growing areas:TampereSotkamo

Growing areas:RovaniemiInari (Saariselkä)Sodankylä

*) year 2019 preliminary statistics

5/4/2020 SARA SODHI

3. SUMMARY OF ACTIVITIES

EXECUTED IN INDIA 2019- 2020

Awards

Finland Awarded as

the “Most Trending

Destination” at India

Travel Awards, 2018

Finland Awarded as the

Best Emerging

Destination at VETA

Awards, 2019

Finland Awarded as the

Best Adventure

Destination at India’s

Best Awards 2019 by

Travel + Leisure

Finland Awarded as

the Leading Luxury

Destination at VETA

Awards, 2020

5/4/2020 SARA SODHI

MOU Signing with Indian Ministry of Tourism

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India Road Show 2019:New Delhi & Mumbai

1. Finnair

2. Visit Rovaniemi

3. Visit Levi

4. Kamp Collection Hotels

5. Holiday Club

6. Tallink Silja

7. Viking Line

8. Eckero Line

9. Time Travels

10. Zenia Tours

5/4/2020 SARA SODHI

India Road Show 2020:New Delhi & Mumbai

1. Finnair

2. Visit Rovaniemi

3. Visit Levi

4. Visit Suomussalmi

5. Kamp Collection Hotels

6. Holiday Club

7. Arctic Tree House

8. Sokos Hotels

9. Nova Skyland Hotels

10. Jarvisydan Hotel

11. Tallink Silja

12. Viking Line

13. Eckero Line

14. Green Escapes OY

15. Nordi Travel

5/4/2020 SARA SODHI

Training on Education System & Education

Travel in India for Finnish Suppliers- Sep 2019

5/4/2020 SARA SODHI

Fam Trips

Principals of Leading schools of Delhi NCR

Winter Theme Summer- Midnight Sun

Workshop

Education Travel

Operators

5/4/2020 SARA SODHI

Press Trip- June 2019

5/4/2020 SARA SODHI

National Geographic Traveller India

Lonely Planet India 5/4/2020 SARA SODHI

India’s Leading Travel Bloggers :

Bruissed Passports

5/4/2020 SARA SODHI

India’s Leading Luxury Blogger:

Masoomminnawala

5/4/2020 SARA SODHI

Design Tour – Helsinki Design Week- Sep 2019

WAR – Movie Showcasing Finland released on 2nd October, 2019

5/4/2020 SARA SODHI

B2C Branding in Corporate Hub in Delhi NCR:

Cyber Hub Gurgaon

5/4/2020 SARA SODHI

Joint Marketing Campaign:

Kesari Travels

5/4/2020 SARA SODHI

Joint Marketing Campaign:

Thomas Cook India

5/4/2020 SARA SODHI

Joint Marketing Campaign:

SOTC India

5/4/2020 SARA SODHI

Joint Marketing Campaign:

N Chirag Travels

5/4/2020 SARA SODHI

Theme & Product Diamond/ India

ADVENTURE FINLAND

CITY BREAK

ACTIVE HOLIDAY in

cool summer and snowy

winterSPECIAL

INTEREST TRAVEL

ACTIVE HOLIDAY in coolsummer and in snowy winter.Nature adventures and localculture experiences. Northern lights, berry picking, tracking, cycling, canoeing

SPECIAL INTEREST TRAVEL –TechnicalVisits (MICE) andEducational travel

CITYBREAK–Helsinki and beyond -Exploring Finnish design, culture activities and lifestyle

ADVENTURE FINLAND– High quality adventurein Finnish Nature

5/4/2020 SARA SODHI

Experiential Luxury Products

• High end experiential accomodation and unique experiences like Midnight Sun and Northern Lights(For Both Summer & Winter in Lakeland, Archipelago & Lapland)

Bucket List Adventure

• Once in a lifetime experiences of unique activities in Finland- Stay in a Igloo, Husky and Reindeer Safaris, Northern Lights

Explore the undiscovered Helsinki Region

• National Parks, Porvoo Region etc

Mono Finland Products ( Summer & Winter)

New products to be developed

5/4/2020 SARA SODHI

Main message(s)

BUCKET LIST FINLAND-High quality adventure and

special accomodation offering

once in a lifetime experiences

EXPERIENCE PURE FINLAND –Live like a local in the Happiest Country of the World with Clean air, water, safety and nature

5/4/2020 SARA SODHI

It’s always a goodtime

to Visit Finland!

For any queries please write to:

Tarja Koivisto

Account Manager – Global Sales

Promotions

Business Finland – Visit Finland

Tel +358 (0)40 546 4949

tarja.koivisto@businessfinland.fi

Sara Sodhi Juneja

India Head, Visit Finland

Business Finland

Mobile: +91 9717760003

sara.sodhi@businessfinland.fi